Jump to content

US-China conflict may influence baht, SET

Recommended Posts

US-China conflict may influence baht, SET

By The Nation




Experts advised investors to keep an eye on the US-China trade war and Covid-19 situation,as it could affect the baht and the Stock Exchange of Thailand (SET) Index next week.



The baht this week (June 29 to July 3) weakened to between Bt30.87 and Bt31.145, compared to the dollar due to strong US economic data.


US nonfarm payrolls in June rose more than analysts expected by 4.8 million jobs, while the US unemployment rate dropped for two consecutive months.


However, the US economy still faces slowdown risks because of the increasing number of new Covid-19 cases in the US.


A currency analyst at CIMB Thai Bank expected the baht next week to move between Bt30.80 and Bt31.30, advising investors to monitor the Covid-19 situation in the US, and conflict among countries, especially the US and China.


The SET Index on Friday (July 3) closed at 1,372.27, down 1.86 points or 0.14 per cent.


A stock analyst at Phillip Securities (Thailand) expected the index next week to fluctuate sideways between 1,340 and 1,400 due to mixed sentiments.


"For factors in foreign countries, the market is still under pressure from the US-China trade war and the second coronavirus wave in the US," the analyst said. "For factors in Thailand, the market would benefit from the government's tourism stimulus packages."

The price of gold on Friday stood at US$1,774.56 per ounce, while the price in Thailand was Bt26,100 per baht weight.


A gold analyst at YLG Bullion International advised investors to sell some gold if the price rose over the resistance level between $1,779 and $1,790 per ounce.


"Meanwhile, we advise investors to buy gold for short-term speculation if the price does not drop below the resistance line between $1,747 and $1,758 per ounce," the analyst said.


Source: https://www.nationthailand.com/business/30390787



-- © Copyright The Nation Thailand 2020-07-05

Share this post

Link to post
Share on other sites

BoT can step in any time to deflate the Baht—but so far they haven’t got serious about Baht appreciation.  

  • Sad 1

Share this post

Link to post
Share on other sites

When a real (*) US-China conflict will erupt, that will definitely be not good for the baht, and good for gold. 


Place your bets accordingly... 


(*) hot war rather trade war

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Create New...